Western Farm Press Logo

U.S. extends tariffs on Spanish olives for 5 more years

The International Trade Commission voted unanimously to extend import duties.

Todd Fitchette, Associate Editor

August 16, 2024

3 Min Read
Olives
U.S. olive processors were granted continued tariffs against Spanish olives. The decision limits dumping and countervailing duties to ripe olives ready for human consumption. Imported olives that still require further processing are not part of the decision by the International Trade Commission.Todd Fitchette

Tariffs that protect U.S. olive processors and producers from the dumping of Spanish olives in U.S. markets will continue another five years, though those restrictions are limited.

The International Trade Commission voted unanimously to extend import duties after it was shown that Spain continues to dump subsidized ripe olives in the United States at the detriment of U.S. producers and processors.

Those duties apply only to processed ripe olives from Spain that are ready for human consumption, according to Elise Oliver, director of operations with the Olive Growers Council of California. Fresh and provisionally processed table olives not yet ready for human consumption are not covered by the orders.

In 2017, a coalition representing the two largest domestic producers of ripe olives – Bell-Carter Foods and Musco Family Olive Company – filed antidumping and countervailing duty petitions over the import of ripe olives from Spain into the U.S.

In 2018 the ITC determined that there was sufficient evidence of domestic injury from the Spanish olives that were sold at less than fair market value. That decision set tariffs on those olives from 10% to 39%. Those rates varied, based on annual reviews by the U.S. Department of Commerce.

“In every annual review since the antidumping and countervailing duty olive orders were put in place, Commerce has confirmed that the Spanish industry continues to sell at unfairly dumped and subsidized prices in the U.S. market,” Oliver said in an email.

Related:U.S. table olive case a win for growers

Oliver said the ITC record “makes it clear that the U.S. industry depends on the U.S. market for virtually all of its sales.”

Felix Musco, president and CEO of Musco Family Olive Company commended the ITC for protecting California’s table olive industry.

“To the extent Spain’s olive exporters are still hoping to turn back the clock, take our customers with unfair pricing, and undermine the American grown and processed ripe olive industry, the ITC’s unanimous ruling is as clear as they come in requiring U.S. tariffs on Spanish ripe olives to stay in place,” Musco said.

Domestic ownership changes

Not long after Bell-Carter and Musco filed their antidumping complaints with the ITC, two foreign firms bought a minority stake in Bell-Carter Foods, which processes olives in Corning, Calif.

In 2018 DCCOP and its Moroccan partner Devico bought a 20% stake in Bell-Carter. Under that agreement the two foreign firms became the primary supplier of raw or provisionally prepared olives to Bell-Carter. The following year Bell-Carter surprised California growers by cancelling domestic grower contracts as the season got under way.

Related:WTO rules in favor of U.S. ripe olive industry

Musco Family Olive Company stepped in later that year and agreed to buy the olives produced by many of the former Bell-Carter growers.

In 2022 the Escalante family, owners of Aceitunas Guadalquivir (AG Olives) of Spain, purchased Bell-Carter Foods. Capital improvement efforts announced shortly after the acquisition are expected to be complete in 2025.

Those include the installation of high-tech cookers, new production lines, and expanded warehouse space, according to a statement by Bell Carter Foods’ Olive Division Vice President Scott McCoy.

According to McCoy, the company remains “focused on fulfilling our domestic expansion promise to benefit the industry, California farmers and customers demanding high quality olive products.”

California currently grows about 12,500 acres of table olives in northern and central California. This will likely increase as Musco’s modern acreage program continues to provide trees bred for mechanical harvesting to growers.

About the Author

Todd Fitchette

Associate Editor, Western Farm Press

Todd Fitchette, associate editor with Western Farm Press, spent much of his journalism career covering agriculture in California and the western United States. Aside from reporting about issues related to farm production, environmental regulations and legislative matters, he has extensive experience covering the dairy industry, western water issues and politics. His journalistic experience includes local daily and weekly newspapers, where he was recognized early in his career as an award-winning news photographer.

Fitchette is US Army veteran and a graduate of California State University, Chico. 

Subscribe to receive top agriculture news
Be informed daily with these free e-newsletters

You May Also Like